Monetary Authority of Singapore granted an exemption from holding a license to cryptocurrency companies, include Binance, Coinbase
The recently approved Singapore temporary licensing exemption for Coinbase certainly comes at a good time for the exchange. The U.S. based cryptocurrency exchange is one of the few firms granted exemptions under the strict Singaporean crypto regulations. The ‘Payment Services Act’ (PSA) imposed a lot of touch restrictions on digital currency businesses.
Singapore temporary licensing exemption is a rarefied credential
The Monetary Authority of Singapore (MAS) announced the latest temporary licensing exemptions for the selected crypto firms. Besides Coinbase, other notable firms include Binance, Gemini, Bitstamp, Luno, Upbit, and Wirex. The Singapore temporary licensing exemption for Coinbase will allow the firm to continue its Singaporean crypto operations until July 28, 2020. After this date, the firms will have to submit a formal application to the regulators for a proper license. MAS has already received an intent to file a licensing application by all the exempted firms.
Among cryptocurrency companies that must comply with the new Payment Services Act by July 28 are Binance Asia Services, Bitcoin Exchange, Bitcross, Bitstamp, Coinbase, Coincola Singapore, Kryptos-x, Luno, Payward, Quoine, Ripple Labs Singapore, Upbit Singapore, and Zipmex. Crypto companies that are able to provide other services in addition to crypto ones include Bitgo Singapore, Gemini Trust Company, Ledgerx, Paxos Global, and Wirex. The complete list can be found here.
The MAS clarified:
“The exemption will cease after the specified period; or if the entity submits a license application under the PS Act, on the date that the application is approved or rejected by MAS, or withdrawn by the applicant.”
MAS follows a stringent procedure to enlist companies for exemptions. The official MAS document states that entities that were in the payment services business before PS Act commencement and didn’t notify MAS after the passage of the Act will be considered in violation of the Exemption Regulations. Therefore, they will not be allowed to undertake cryptocurrency-related operations as they will no longer be licensed. Such entities are to get in touch with MAS for proper compliance. Many firms adhered to the new regulations.
Singapore’s temporary licensing exemption doesn’t come easy. Coinbase now joins a host of other crucial crypto players. These include Alipay, Pundi X, Apple Pay, and Google Pay.
Cryptocurrency landscape evolving quickly in Singapore
The licensing rules of Singapore are not only strict but also progressive. The country actively promotes cryptocurrencies and their applications in everyday financial needs. Singapore demands that participating firms comply with strict anti-money laundering regulations laid down in the PSA. At the same time, the Act offers appropriate protection to crypto investors and companies.
As Singapore’s crypto regulatory scene evolves, its regulations are getting more strict and progressive simultaneously. There’s a pattern of strict virtual currency regulations emerging from across the globe. Recently, South Korea enacted a law that allows virtual currency operators to do business, but they will be subject to the same regulations as conventional banks and other financial institutions.
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